Stock Indexes Slip; Apple And Chips Apply The Brakes | Stock News & Stock Market Analysis

U.S. stock indexes started on a weak note and maintained it near midday Tuesday as semiconductor stocks and Apple dragged the market lower.

X The Dow Jones industrial average was just below the break-even line, but the S&P 500 and the Nasdaq retreated 0.1% and 0.4% respectively. The small cap Russell 2000 rose 0.1%.

Volume in the stock market today was running lower vs. Friday’s preholiday pace.

Chips had much to do with Tuesday’s weakness. The Philadelphia semiconductor index dropped 1.3%. Three stocks in the Sox skidded 2% or more. They included Skyworks Solutions (SWKS), down 2%; Qorvo (QRVO), off 3%; and Micron Technology (MU), down about 5%.

The three chip groups — chipmakers, chip designers and chip equipment makers — are trading 6% to 11% off highs made in November. Chips were leaders throughout most of 2017, but gave back some of their gains beginning in November.

Blue chips were up by a 2-1 ratio in the Dow Jones industrial average. Leaders on the upside included Wal-Mart (WMT), Home Depot (HD) and Procter & Gamble (PG), each up roughly 1%.

Only one stock in the Dow was moving in strong volume: Apple (AAPL) dropped about 2% in turnover 150% above average. Early Tuesday, Bloomberg cited several analyst reports saying that demand for Apple’s iPhone X is weakening.

In the IBD 50, a list of the best stocks in fundamentals and technicals, Diamondback Energy (FANG) jumped 2% in strong volume. Diamondback is on track for its  sixth consecutive up session.

The energy sector has shown some strength recently, posting the most new highs Thursday and Friday among 33 sectors. Jagged Peak (JAG) leapt 3.5% higher as it headed for its seventh daily gain in a row.

Crude oil rose 2% near midday Tuesday after a report of an attack on an oil pipeline in Libya.

Financial News

Economic news was mixed.

The S&P CoreLogic Case-Shiller home price index for October rolled in at 0.7% vs. the consensus view of 0.6%. The prior 0.5% reading was revised to 1%.

The Richmond Fed’s manufacturing gauge for December read 20, which happened to be the lowest estimate in the range. The consensus view was for 23. Readings above zero point to growth. Meanwhile, the Dallas Fed’s manufacturing gauge told a different story. The December reading was 29.7, above every estimate in the range. The consensus view expected a reading of 20.


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Originally posted 2017-12-26 18:20:57.


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